Corporate Social Responsibility for many companies is not just about compliance or requirements to be a supplier, but is a statement demonstrating Business Excellence to their target market. The main areas covered under CSR are Health, Safety & Wellbeing, Environmental impact, Quality Management and Ethical Trading. All of these areas of critical importance to any company. They cover the safety and wellbeing of staff, contractors, visitors, consumers/customers and also the planet.

There are legal requirements for companies to manage a number of these aspects, but in addition to these minimum requirements there are also recognised International standards in Safety, Environmental, and Quality Management namely ISO 18001/14001/9001. Other standards also exist for specialist industries.

Nearly all these standards focus on best practice and continuous improvement of procedures and management of those procedures and to this end CSR fits nicely into the Internal Business Process Perspective.

Having a clear set of procedures for managing any of the component parts of CSR is only part of the effort required, and there is a significant part to be played by the management, staff and culture of the organisation.

So where does this fit in to the Balanced Scorecard? The Balanced Scorecard consists of four different perspectives to analysis business performance: Financial, Internal Business, Customer and Learning & Growth. Ensuring that your business is up to date with corporate social responsibility fits into the Internal Business Perspective.

BY CHRISTINE BROWN-QUINN

Who hasn't been in a meeting recently where the new buzz term 'employee engagement' wasn't used? I suspect, like me, you're getting pretty fed up hearing about it. What does it mean and why is it such a big issue?

Employee engagement means motivating your employees so that they are enthusiastic about the work they do (and so the theory goes) and as a result they are more productive. Employee satisfaction levels are at an all time low largely due to the financial crisis and ensuing economic downturn. People are questioning their commitment to work, especially at the expense of personal interests like health and family. And of course graduates list work-life balance as a key criterion for selecting their new employers.

The answer isn't another offsite, or golf day. During last week's lecture at the London Business School, Stephen Green, Group Chairman, HSBC Holdings plc, offered a different approach: corporate philanthropy or corporate social responsibility. Not the kind that sits separately from the rest of the business, but rather corporate philanthropy which is integrated into the culture and fabric of the organization, and where employees feel engaged as a result of their company making the world a better place.

We're not talking about some fuzzy socialist model. Remember, Stephen Green is Chairman of a global bank - he isn't suggesting that businesses should be run as charitable organizations. On the contrary, businesses need to continue sound business management practices: identifying your competitive advantage, delivering products and services which meet the needs of your customers, and generating a profit as a result of running a good business. (Note that profit is the result of a well-run business, not the reason for its existence.)

Today's social and economic environment is much more complex than in Milton Friedman's day when companies were only expected to focus on profit. Profit isn't enough. Shareholders, employees, governments, communities expect businesses today to add value as members of the wider community in which they operate. Businesses need to think strategically about corporate social responsibility. Where should the company focus its attention? Where can it most effectively apply its resources where benefits can be gained on all sides?

If you want your employees to feel engaged, be clear about what value the organization is providing to the communities in which it operates and involve employees directly in these efforts as much as possible. The result is likely to be employees who bring fresh ideas and perspectives back to the office. Your recruitment efforts are also likely to benefit, not only from increased interest from graduates, but also from women who seek fulfilment beyond financial compensation, especially when balancing career and family.

A sustainable business depends on long-term relationships with your customers and other stakeholders, and those relationships in turn depend on employee engagement. The Banking Crisis has taught us many things. Focusing just on short-term profits leads to disastrous consequences, including a disengaged workforce.

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